Morning Commentary: Convertibles trading quiet amid equity volatility; Bill.com active

By Abigail W. Adams

Portland, Me., Jan. 4 – The convertibles secondary space remained quiet early Wednesday as equity volatility continued.

Equity indexes again launched the day strong but saw a round of heavy selling following the release of the JOLTS report, which reflected little change to the job opening and hiring rate.

Indexes were mixed following the release of the report but popped back into positive territory shortly before 11 a.m. ET.

The Dow Jones industrial average was up 67 points, or 0.21%, the S&P 500 index was up 0.48%, the Nasdaq Composite index was up 0.36% and the Russell 2000 index was up 1.15%.

Further volatility is expected as markets await the 2 p.m. release of the Federal Open Market Committee’s December meeting minute notes.

However, few were making moves in the secondary space with $60 million on the tape a little more than one hour into the session and no name seeing more than $5 million in reported volume.

Bill.com Holdings Inc.’s 0% convertible notes due 2025 were active early in the session although with little movement in price.

The 0% convertible notes were changing hands at 103 versus a stock price of $110.41, according to a market source.

There was $4 million in reported volume, making it the most active issue early in the session.

Bill.com’s stock saw a strong start to the session but dropped into negative territory and was seen at $108.07 shortly before 11 a.m. ET.

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